Image source: Adwo, Shutterstock.comHeliostar Metals Ltd. (TSX-V: HSTR), a North American precious metals exploration company, announced a $4 million private placement with Canaccord Genuity Corp. as the lead agent on Thursday.
The company plans to issue up to 3.81 million units at $1.05 each. Each unit will consist of a common share and a half warrant, with full warrants exercisable at $1.70 for one year. The underwriters, which also include Sprott Capital Partners LP and Haywood Securities Inc., have been granted an over-allotment option to purchase up to an additional 15% of units before the deal closes.
Heliostar says it plans to use the proceeds to advance its projects in Alaska and Mexico, and for working capital.
Heliostar has a slate of four projects, each of which is undergoing exploration at various stages. The Cumaro project is located in Sonora, Mexico, where the company recently detected silver values up to 390 grams per tonne (g/t Ag) over one metre from channel sampling. La Lola is also located in Sonora, and the first two holes from an inaugural 1,500-metre drill program at the project returned grades including 2.5 metres of 92 g/t Ag. Unga is on the Unga and Popof islands in Alaska, where the company recently began a drill program to follow-up on 2020 exploration that revealed two gold mineralized veins that the company believes are open for expansion. The most recent batch of results from that project included 1.95 metres of 5.1 g/t AuEq.
Shares of Heliostar have declined a bit in 2021 alongside plunging gold prices, though the company has posted a number of solid drill results from its projects this year. Following the announcement of the private placement, the stock climbed two cents to close at $1.15 per share on Thursday.
